Thursday, Oct. 8, 18.22 p.m. CET
Conxemar ups visitor numbers by 2,000
After three hectic days, Conxemar 2014 closed today, with more than 26,200 professionals from 94 countries visiting this year's show.
This is 2,000 more than during the 2013 edition, the organizers said.
An increasing number of visitors from Portugal, Italy, France, the Netherlands and Greece came this year to Vigo.
"Most exhibiting companies agreed that economic activity is reactivating and reflected more optimism among buyers," the organizers said.
The World Congress co-organized with FAO on Monday brought together 375 professionals from 24 countries on its third edition. It has added a more international aspect to the exhibition, they said.
"Prospects for next year couldn't be better," Conxemar wrote in a statement. "Vigo will become the world capital of fisheries thanks to the fact that Spain has been chosen by FAO to celebrate the 20th anniversary of the Code of Conduct for Responsible Fisheries, in the framework of the International Fisheries Stakeholders Forum."
More than 150 countries will be invited to this event.
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Thursday, Oct. 8, 4.17 p.m. CET
Focus on VAP for future growth
Opinions differ -- especially in seafood.
While Iberconsa's Fernando Lago believes natural products, such as fillets, will remain the backbone of Spanish seafood sales (see blog post from earlier today), it's all about VAP for A Coruna-based processor Isidro de la Cal.
"Our strategy is to go VAP," Luis Herrero Fernandez, export manager, frozen products at the company, told IntraFish.
Its new ready-to-cook branded salmon recipes have been on sale at major customer Lidl for about a month now and are doing well, he said.
"We try as much as possible to add value. VAP is getting more and more popular -- in our opinion it's the future," he said.
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Thursday, Oct. 8, 3.45 p.m. CET
Interatlantic: Growing with exports
Importer and trader Interatlantic, founded in Vigo in 1989, still counts some of Spain's biggest processors and distributors to its customers, but it's focus has shifted on exports as economical problems in the country started to arise.
Today, around 60 percent of its business comes from Portugal, Italy, France, Russia, China, Thailand and Brazil, Jesus Martinez, the company's commercial manager, told IntraFish.
"Spain is slowing down a bit but our exports are growing," he said. "We simply thought we should make a change towards exports."
China is particularly important to the company, where it has an office in Dalian, both as a buying but also supplying partner. Other offices and partners are located in Peru, Chile, South Africa, and Poland.
Giant squid, sourced from two factories in Peru, is the €35 - €40 million-turnover company's biggest business, Martinez said.
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Thursday, Oct. 8, 1.10 p.m. CET
Iberconsa exec: Natural products still 'main market drivers'
VAP is catching on in Spain, but "the truth is the main market drivers are still natural products," Fernando Lago, sales director at vertically integrated fishing company Iberconsa, told IntraFish.
There have been some projects in the past 10 years in the industry, he said, but demand and offerings are not much different compared to 2004.
He believes the market has seen a shift from fresh to frozen fish in terms of before and after the financial crisis, "but VAP is not there yet," he said.
Lago described the Spanish consumer as "traditional. It's in the culture, it's natural for us to prepare fish," he said.
"I'm not saying the change will not come but it will take a while."
Iberconsa has VAP products as part of its offerings. But the big bulk of sales is still in natural fillets, portions and blocks, especially hake, and wild Argentinian shrimp.
Around 50 percent of the company's turnover comes from Spain, the rest is exports.
"Sales-wise it's going good," Lago said, adding the company has grown annually at a rate of 10 percent between 2010 and 2013.
"We're not going to reach that this year because 2013 was so good," he said, "but the market perspective is good."
In terms of strategy, the company is focusing on continuous investments "towards securing raw material. This means we're either going to invest in vessels, factories or quotas in the next two years."
This continues the consolidation trend it has driven for the past couple of years, Lago said. Today, the company operates 21 vessels in Namibia, South Africa and Argentina, selling around 50,000 metric tons a year.
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Thursday, Oct. 8, 12.46 p.m. CET
Spanish trader inks distribution deal with Pacific Andes, Pickenpack
Spanish cod (bacalao) trader La Bacaladera has inked a deal with Pacific Andes and Pickenpack Europe to distribute their products in the Spanish and southern European markets, the company's Imanol Gurruchaga Aguire told IntraFish.
The partnership was started about three months ago, and La Bacaladera is now offering 15 different Pickenpack and Pacific Andes-branded products to foodservice and other distributors in the region.
Hake fillets, pollock fillets and nuggets are so far the biggests sellers, he said.
"We're also trying to get into local supermarket chains with the products, but that's a bit more difficult," he said.
The company, which employs about 100 staff with base in Irun, is traditionally focused on cod products, which it sources from Norway, Iceland and Russia -- depending on the price, Gurruchaga Aguire said, but it also trades in Russian Alaskan pollock.
Supermarket chain Carrefour is one of its biggest clients, but it also sells to Mexico and Africa, he said.
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Thursday, Oct. 8, 12.05 p.m. CET
China demand unstoppable
Dutch firm Ocean Fish has come far since its beginnings as a trader of Icelandic fish to the Netherlands, where it set up base in 1999.
Founded by Iceland-born Valdimar Kristjansson -- the "main brain" behind the operation -- it is now present with subsidiaries in Vietnam and China, a sales executive with the fitting name Shark (yes it's his real name, we asked), told IntraFish.
The growth in Asia, especially China has been tremendous, he said. The company is today selling squid products, H&G fish, fillets, blocks into the country. Demand for tilapia and chum salmon is particularly big, Shark said.
This is also due to this season's shortage for the species. "We also see a shortage in shrimp and despite higher prices we still see a huge demand," he said. "Chinese clients are willing to pay a bit more."
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Thursday, Oct. 8, 7.56 a.m. CET
New shrimp venture to stir up Belgian wholesale market
A new Belgian venture -- Seacorin -- is looking to make headway in the country's domestic shrimp market, through tight relationships with suppliers in Vietnam and a focus on a "low-cost but sustainable" operation.
After six months of research, the new company was founded by three former Setraco executives on Sept. 5 this year, with the financial backing of foodservice firm Defraron, according to Koenraad Van Simaey, co-founder and purchase manager at Seacorin.
Click here to read the full story.
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Thursday, Oct. 8, 7.51 a.m. CET
Regal Springs targets European market with new sales rep
Regal Springs, one of the world's largest growers and producers of tilapia, has appointed a new sales representative in Europe, with base in Vigo, Spain.
Francois Delpierre joined the company in mid-September, and was previously employed at food ingredients and additives producer Hasenosa, part of Spanish multinational Pescanova.
Click here to read the full story.
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Wednesday, Oct. 8, 5.17 p.m. CET
Viciunai exec: Russia's imports ban 'not so bad after all'
Russia's ban on food imports from the European Union, the United States, Norway, Australia and Canada came to a shock to many in the seafood industry, Lithuanian surimi producer Viciunai included.
But while things were "hectic" in the last couple of months -- especially for the firm's purchasing department -- things didn't turn out as bad as expected, Dirk Belmans, CEO of Viciunai Europe, told IntraFish.
"Russia's decision meant that all of a sudden we faced a very complex situation but in the end we feel it might not be as bad," he said.
The company has found alternative solutions to source its raw material for its Russian factory and spent the last two months re-routing raw material purchases across its processing plants.
And "being in Russia and producing for the Russian market gives us strength," he said.
With processing plants in Estonia, Lithuania and Spain -- in addition to the one in Russia -- Viciunai was able to find "very quickly" alternative production locations for all the affected countries.
"That flexibility has allowed us to continue our operations and maybe even to increase in certain markets," he said.
The situation is "stable" now, Belmans said.
"Our factories are all set up to use alternative species. That aspect is now bearing its fruits," he told IntraFish.
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Wednesday, Oct. 8, 4.45 p.m. CET
Quiet Chinese giant
Chinese companies usually have a big presence at international trade shows and Conxemar is no different.
This year's biggest Chinese booth is occupied by China National Fisheries Corp., a state-owned fishing firm with operations in the Atlantic Ocean, the Pacific Ocean and the Indian Ocean.
IntraFish was eyed suspiciously when attempting to talk to some of the execs at the booth and was asked several times by the firm's Spain-based commercial director: "Why do you want to know this information?"
In the end, we managed to get a rough picture of the firm's operations, but weren't allowed to print the exec's name.
Here we go: China National Fisheries operates around 230 vessels, and is the owner of the largest fishing fleet in China. It runs offices and JVs in more than 15 countries outside China, including Spain, Morocco, Mauritania, Senegal, Guinea-Bissau, Guinea, Sierra Leone, Ghana, Yemen, Oman, Myanmar, Suriname, Madagascar, Mozambique, Indonesia and more.
It produces more than 100,000 metric tons of processed seafood every year from 10 processing and cold-store facilities. Its main products include tuna, octopus, cuttlefish, squid, deep-sea shrimp, as well as croaker, ribbonfish, pomfret, snapper, sardines and more.
In Europe, its main customers sit in Spain, Portugal, Italy, Greece, France, Germany and the Netherlands. Combined it turns over about $1.6 billion annually in the region, selling about 45,000 metric tons.
In addition, it focuses on the domestic market in China, and exports markets in Africa and Japan, the exec said.
At Conxemar, it is meeting existing customers but also hopes to "get our name out there; get known in the fishing world," the commercial director said.
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Wednesday, Oct. 8, 3.23 p.m. CET
Blue Fish adds new member
European-run NGO Blue Fish, launched by France's two biggest fishing ports in 2013, just added a new member to its pack: Vigo's fishing shipowners cooperative (ARVI), Nicolas Teisseire, director at Blue Fish, told IntraFish.
The partnership was closed at Conxemar and will help Blue Fish to get closer to its goal actively promoting and sharing best practice implemented by the European fishing sector and their scientific partners.
"Our goal is to showcase the active economic and social contribution of fisheries to the social fabric of coastal areas," Teisseire said.
Members sit in Spain, France, Portugal, Ireland, Scotland, England and Germany and includes stakeholders from the industry, educational institutions, research bodies, NGOs, port management institutions, public institutions and local authorities.
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Wednesday, Oct. 8, 3.00 p.m. CET
Measuring King crab's success
The employees at Madrid-based Chatka have one important tool in use at this year's Conxemar show: a measuring tape.
Anyone interested can see proof of how big the "original" King crab really are. Some come to a size of up to 2.5 meters, if they're old enough, Chatca's Rocio Tuccio told IntraFish.
She described the company as the "original."
For more than 75 years, it has been sourcing King crab from Kamchatka and selling it as frozen, canned or blocks from its processing factory in Madrid back to Russia or into the Norwegian market.
When asked how the company ensures it is not using illegally caught crab, Tuccio said paperwork is everything.
The company has a complete traceability system in place and is only working with quota-holders. Is the quota finished, Chatka will stop sourcing, she said.
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Wednesday, Oct. 8, 1.05 p.m. CET
Portuguese processor ploughs €9.5 million into factory expansion
Portugal-based processor Frijobel has recently started working on an expansion of its processing facility in Penela, which is slated to conclude in the first quarter of 2015.
The €9.5 million investment will triple its processing capacity from currently 15 metric tons per day to 45 metric tons, Rui Marroni, commercial director at the firm told IntraFish.
The company imports about 80 to 90 percent of its raw material from countries all over the world.
Products included frozen portioned hake, salmon, ling, cod, stingray, as well as whole sole, seabream, seabass, horse mackerel, and sardines.
In addition, it sells octopus, cuttlefish, squids, clams, shrimp, mussels and crab.
With the expansion the company will be able to expand its market in Portugal, Marroni said.
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Wednesday, Oct. 8, 12.45 p.m. CET
'Slow' Spanish surimi market
"Consumers still don't have the culture of eating surimi," she said. "We have a lot of explaining to do -- it's tough work."
To boost growth, the company is constantly expanding its range, which it sells under its three brands La Gula del Norte, Krissia and Angulas Aguinaga.
The latest addition was made to its La Gula del Norte brand, which it introduced at this year's Conxemar: a microwaveable ready-to-eat dish, combining surimi eel substitutes with mussles (chirlas).
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Wednesday, Oct. 8, 12.11 p.m. CET
Tales of difficult German customers
German shrimp and seafood importer Anduronda has chosen on of the most difficult markets in Europe as its main focus: Germany.
While Spanish consumers are willing to try out new and different things in terms of seafood, Germans very much hold on to their 'traditional' species -- and prices, Daniel Sancho, sales director at the company, told IntraFish.
"It's difficult to introduce new products into the market," he said. Anduronda is mainly supplying to wholesalers and cash and carry clients.
Customers "know what they want and are hesitant to try out new products and species," he said.
While the company has always been able to service customers throughout the latest shrimp supply crisis -- due to high inventories -- higher prices have also created issues with customers.
"We've seen a lot of market restructuring and clients shifted to smaller sizes and product forms," Sancho said.
But all in all, business has been good throughout, also in the Spanish market in which it has been present for around six or seven years.
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Tuesday, Oct. 7, 16.45 p.m. CET
ISI to diversify from cod, Icelandic products
Iceland Seafood International (ISI) in Spain is planning to diversify its product range from cod, and in fact Icelandic products, into other types of frozen fish and seafood.
With the move, the company hopes to grow its customer base and expand in the Spanish, Portuguese and Italian market, Oscar Ollero, area manager at ISI Spain, told IntraFish.
Currently, cod accounts for about 80 percent of its sales in southern Europe, half of which is salted cod. In addition, it supplies scampi and redifsh products, both sourced from Iceland.
It now is looking at squid and other "Spanish" products, which have seen good demand over the years, Ollero said.
"We want to establish a company which does more than one product; we want to broaden our focus and diversify a little bit," he said.
The focus, however, will remain at "medium-to high quality products. Nothing like pangasius and always without additives," Ollero said.
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Tuesday, Oct. 7, 16.33 p.m. CET
Pescapuerta nets $9.4 million for Tunacor sale
Spanish processor Pescapuerta has fetched NAD 105 million (€7.4 million/$9.4 million) for the sale of its 49 percent shareholding in Tunacor, Peya Hitula, general manager at the Namibian fishing firm, told IntraFish.
The deal, which was finalized in September, saw Kaume Group -- snap up the stake, making the group 100 percent Namibian.
Hitula described the move as a new start for Tunacor "to move to a fully Namibian-owned company which is able to catch, process and market all over the world."
Despite the break, Pescapuerta and Tunacor will continue to work closely together on a supplier-buyer basis, he said.
"Both companies will benefit from the continuation of this partnership," Hitula said. "Pescapuerta is a good strategic partner.
"I believe it's a good move for both Tunacor and Pescapuerta. It brings about a new range of opportunities for both companies to explore."
Hitula didn't share current turnover figures for the company, but said he hoped this venture will enable increased sales.
The move also plays into the Namibian government's 'Vision 2030,' which lays out a plan for the country to become a highly industrialized player in the global market, not only fishing but across all industries.
Kaume Group is a JV between Tumina Fishing, Voorbok Fishing -- both monk quota rights holding companies -- as well as hake quota rights holding companies Atab Fishing, Ozohi Fishing, Compass Fishing and Corvima Fishing.
The remaining 51 percent of the shares in the company are owned by the Tunacor Group (25 percent) and Beluga Fishing (26 percent), which consists of Diaz Fishing, Empire Fishing, Ombaye Fishing, Morca Fishing and Huab Fishing.
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Tuesday, Oct. 7, 15.30 p.m. CET
Saucy Fish? No wait, Mr. Fisk
Spanish firm Scanfisk, based in Zaragoza, introduced its Mr. Fisk brand three months ago, venturing from its traditional MAP products into value-added processing.
The line includes portioned salmon, hake, cod, swordfish and tuna products with different sauces, microwaveable and ready to eat within five minutes, Angel Garcia, general manager at Scanfisk, told IntraFish.
Currently, the company produces about 2 metric tons of finished product per week, which it sells at Spanish supermarkets El Corte Ingles, Bompreu and Simply.
It is currently also in talks with European trade partners in the Netherlands and is hoping to venture into Belgium and France soon.
At the same time, Scanfisk is expanding its existing factory in Zaragoza, adding additional production space of 2,000 square meters. This will double its size and expand its production capacity by about two to three times, Garcia said.
Construction is slated to be finished in June 2015, he told IntraFish.
The biggest focus for Scanfisk, however, is still its MAP business, which it will continue to grow.
In 2013, the company reported a turnover of €39 million, and Garcia hopes to report sales of around €42 to €43 million this year.
However, the results introduction of the new line and investments in its processing factory will be seen by the end of 2015, and in 2016.
"We want to grow fast but we're not in a hurry," Garcia said.
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Tuesday, Oct. 7, 15.02 p.m. CET
Chinese New Year to boost Ecuadorian shrimp prices
Ecuadorian shrimp producer Songa is expecting a rush on demand for its products, which could potentially prices higher in the next couple of months.
"Processors will start buying soon for Chinese New Year," Rodrigo Laniado Illingworth, sales representative at the company, told IntraFish.
"They are usually going hard during the seafood show in China," which is set to take place from Nov. 5-7 in Qingdao.
"This might -- hopefully -- push up prices," he said.
In contrast, the Russian ban on seafood imports on the United States, the European Union, Norway, Canada and Australia -- implemented on Aug. 7 -- has not had and will not have a massive impact on Ecuadorian shrimp, despite the government declaring in August it is ready to turn on the tab for the Russian market.
Songa, which sells about 100 containers of shrimp a month, currently is supplying one container to Russia. "But we sure are interested in Russia as a new market," Laniado Illingworth said.
The company's main markets are currently the United States and China. It is trading mainly in head-on shrimp.
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Tuesday, Oct. 7, 1.10 p.m. CET
Pescanova ventures into frozen sushi
Demand has been growing so much, Cristina Fernandez Munoz, marketing director at the company, told IntraFish, that it now expanded into frozen sushi, introducing the product at Conxemar 2014.
The products, which use salmon, shrimp as their base, will hit nation-wide retail shelves within this year, she said.
Other newly launched products in the VAP category include frozen hake mini burgers for kids, frozen breaded hake fillets and frozen gambon for preparation in the oven.
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Tuesday, Oct. 7, 12. 45 p.m. CET
Lumar lands El Corte Ingles retail deal with new VAP line
A Coruna-based seafood processor Lumar, which made headlines in the last few years due to its ongoing liquidity issues, has inked a new deal with retail chain El Corte Ingles.
From mid-October, the retailer will distribute a new ready-to-cook range at its 50 Hipercor centers across Spain, Rodrigo Rodriguez, commercial director at the firm, told IntraFish, at the Conxemar show in Vigo.
They are made with tuna, salmon or cod with different sauces, and come with vegetable or other sides. The menus vary from a Kids range, a Grill range and a Menu range.
The same products are currently also sold online via online shop Tu Despensa -- a completely new channel for the company, "which we are happy to test."
The launch at Hipercor will be heavily promoted, Rodriguez said, through tastings with chefs and other point-of-sale and media promotions.
Further listings with Spanish retailers -- and perhaps even in foreign markets -- are planned for the next year, he said.
Alberto Romero Bermo, director of sustainability and sourcing at Lumar, said it's good to be back in a strong position after the issues faced in the last few years.
The liquidity problems "took a lot of wind out of our sails but we're positive for the future," he said.
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Tuesday, Oct. 7, 12.20 p.m. CET
Seafood Connection targets 20% growth in southern Europe, eyes UK as next big market
Maruha Nichiro-owned Dutch importer Seafood Connection, which recently opened an office in Madrid, is reporting some good results from the first months of operation.
"We're seeing good growth again," Johan Brouwer, sales director at the firm, told IntraFish.
"We tried to manage the European market for a long time from the Netherlands but our opinion is we should be in the market with local people," he said.
Helped by the southern European recovery from the financial crisis, which bogged down trade in recent years, the company is confident it will grow more than 20 percent in 2014, he said.
Pangasius fillets are still making up the big bulk of sales, "but what is really growing is shrimp," Brouwer said.
In addition, the company also starting selling Maruha Nichiro's sushi toppings to trade customers in Spain, Portugal and Italy last year, and sales have jumped "significantly" in the segment, parallel with the growth seen in the sushi restaurant market in general.
The company, which recently also opened an office in the United States, is also looking to further expand in Europe.
"Maruha asked us 'please grow' in Europe," Brouwer told IntraFish. "We're not present in all European countries and it's definitely something we're looking at."
He highlighted the UK market as the next potential step for the company, describing a UK office as a "work in progress."
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Monday, Oct. 6, 5.20 p.m. CET
Asia: $1 billion lost due to EMS
EMS caused Asian producers around $1 billion in losses, Rohana Subasinghe, chief aquaculture brand FAO Fisheries and Aquaculture Development, told the audience at Monday's World Shrimp Congress in Vigo.
The impact ranged from a shortage of supply to public health concerns, the closure of farms due to non-stocking, reduced annual output in affected countries, a drop in frozen food products, and finally impacts on trade -- with several countries suspending or banning the import of live shrimp or all forms of shrimp products.
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Monday, Oct. 6, 4.05 p.m. CET
Songa president calls for new 'commercial ways'
Rodrigo Laniado, president at Ecuadorian shrimp producer Songa, lamented a range of issues his country's shrimp producers are facing today, calling for new commercial ways to erase some of the volatility and issues in the market.
For one, he said, many markets are restricted through tariffs, duties and other fees, which makes it difficult to explore new markets, which could potentially hold massive opportunities for shrimp producers.
He named the example of Brazil, which requires certificates from Ecuadorian producers that shrimp are absolutely disease-free, which he called virtually impossible.
"This is seriously hurting the industry," he said.
Laniado also called for an end to shrimp overweighing, due to overglazing and "gray" ways to get more money for less shrimp.
He described this as another massive issue, which is neither fair to customers nor markets, and called on the government to take action.
Both EMS and China's growth as an importer have cause "imbalances" in the market, leading to extreme volatility in the price of Asian and Ecuadorian shrimp.
"I think it's essential to find a pricing balance," he said, for more sustainable and profitable operations in the long term.
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Monday, Oct. 6, 2.43 p.m. CET
CP Foods' Fish Fight 10-Point Plan
Following The Guardians revelations on slavery in the Thai shrimp supply chain -- which implicated CP Foods big time -- and the US State Department's downgrade of the country's labor status in its "Trafficking in Persons" (TIP) report earlier this year, the Thai shrimp giant embarked on a 10-point plant to eradicate labor issues for good.
The company's Senior Vice President Robins McIntosh outlined the plan for the audience at the World Shrimp Congress:
- Use as much fishery by-product from tuna and surimi processing to produce shrimp feed as possible
- Actively reduce the amount of fishmeal used in its shrimp feed
- Continue to research and develop alternative ingredients to fishmeal
- By 2015 achieve minimum of 50 percent of its fishmeal to come from certified fisheries -- the company is already committed to BAP certification for its shrimp processing plants
- By 2017 to commit to zero use of fishmeal produced from "trashed fish"
- By 2021 commit to zero use of fishmeal in its shrimp diet all together
- Ensure it only uses suppliers who comply fully with the Department of Fisheries' (DOF's) new certification scheme, which comes into effect in 2014
- Ensure it only uses suppliers who fully comply with the DOF's new guidelines on sustainable fishing, governing key criteria such as conservation zones and fishnet mesh sizes, again due to be published in 2014
- Invite Hugh Fearnley-Whittingstall and his film crew to visit CP Foods in Thailand in 2015 to show the progress the company is making
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Monday, Oct. 6, 2.33 p.m. CET
Thai shrimp exports recover in August, 155,000 tons expected to year-end
Between January and July this year, Thai shrimp exports amounted to 76,000 metric tons, after the last few months showed a narrowing of losses, Robins McIntosh, senior vice president of Charoen Pokphand Foods (CP Foods), said during his talk in Vigo this afternoon.
"It seems we reached the bottom in June, July and started to recover in August," he told the audience.
The country, which has been battling Early Mortality Syndrome (EMS) since late 2012, exported slightly more than 20,000 metric tons of shrimp in August (see graph below).
Historically, exports between August and December amount to 42 percent of the year-total, McIntosh said. Therefore, he projects total exports for the year to reach 155,000 metric tons.
McIntosh's projected end of year farm production settles at 220,000 metric tons.
"Improvements are finally taking hold," he said. "If the trend continues the end of year could end up above 220,000 [metric] tons."
He described 2013-2014 as "overwhelming" in terms of EMS but is predicting long-lasting change, through the implementation of new management and farming models.
Much is down to smaller, more controlled, intense ponds, he said, in addition to efforts to keep nutrient levels and therefore bacteria levels lower.
He also revealed that CP Foods is working on "new genetics," which could produce shrimp within one or two years that are able to "survive much longer."
The exec also expects total shrimp production to recover into 2015 and 2016, predicting slightly above 250,000 metric tons next year, followed more than 460,000 metric tons the 12 months after (see graph below).
"But my guesses have been wrong before," he said laughingly.
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Monday, Oct. 6, 2.05 p.m. CET
India's shrimp boom
India has set some ambitious targets with its goal to increase its seafood exports from around $5 billion in 2013/2014 to $10 billion by 2020 -- but A.J. Tharakan, president of the Seafood Exporters Association of India, is confident it will reach its goal -- all issues aside.
Shrimp exports, which currently account for 67 percent of the total overseas sales value, or $3.35 billion, are likely to continue to grow 20 percent on a year-on-year basis, he said, with more areas coming under vannamei farming.
Wild shrimp catches (head-on basis) are likely to remain fairly constant, amounting to between 200,000 metric tons to 250,000 metric tons depending on climatic conditions.
As a result, the processed export volumes from landings of wild-caught shrimp will range from 75,000 metric tons to 100,000 metric tons, depending on the yearly catch, Tharakan said.
In the current financial year of 2014/2015 total exports are likely to increase to $6 billion, of which wild and farmed shrimp will continue to be around 67 percent of total exports, he told the audience.
Farmed shrimp sales will hit about $3 billion this year (50 percent of the total export value), while wild-caught shrimp will amount to around $1 billion, 17 percent of total seafood exports, up from around $900 million in the last financial year.
"Aquaculture growth has been quite spectacular in recent years," he said.
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Monday, Oct. 6, 1.44 p.m. CET
Why not invest in Africa?
Africa has similar climatic conditions as Asia and Latin America, and its coastline is vast -- so why has shrimp aquaculture never gained momentum on the continent?
That's the question Jose Ignacio Cuevas, managing director at Gambastar, asked during his presentation at the World Shrimp Congress in Vigo.
The answer seems simple: The risks are still too high.
Around 80 percent of Africa's current farmed shrimp production concentrates in Madagascar. In 2012, total production on the continent reached just slightly above 6,000 metric tons -- a mere 0.16 percent of the global production of farmed shrimp.
The still biggest weaknesses in the way of an "explosion" of the farmed shrimp sector are still the poor infrastructure and lacking expertise for aquaculture, including feed, inputs, hatcheries, cold chain infrastructure and processing plants, Cuevas said.
In addition, many aquaculture projects, for instance in South Africa, Mozambique, Egypt and the Seychelles have failed in the past, often due to the political and legal environment and instability, lack of knowledge on disease management and the general high risk of investment in Africa.
Nevertheless, he is seeing opportunities for the development of a sustainable shrimp aquaculture, especially because of the large economic growth and growing population which will boost the domestic demand for shrimp.
Total production of wild and farmed shrimp is at around 100,000 metric tons per year, with wild shrimp (90,000 metric tons) accounting for about 2.7 percent of the world wild shrimp catch.
The main producing countries are Nigeria with 23,000 metric tons, Madagascar with 15,000 metric tons, Cameroon with 11,000 metric tons, Morocco with 8,500 metric tons, Egypt with 8,000 metric tons, Senegal with 5,800 metric tons, Tunisia with 5,500 metric tons and Ghana with 3,000 metric tons.
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Monday, Oct. 6, 1.05 p.m. CET
Greenlandic coldwater shrimp TAC to plummet 25 percent
Greenlandic coldwater shrimp supply (Pandalus borealis) is set to take another 25 percent cut in its total allowable catch (TAC), after dropping already 32 percent between 2010 and 2014, Mikael Thinghuus, CEO of Royal Greenland, said.
The TAC recommendation for 2015 is set at 65,000 metric tons, down from close to 90,000 metric tons this year, and 125,000 metric tons in 2010.
"It is not that the stock is unhealthy but the recruitment is not very good," he told the audience at the World Shrimp Concress.
Thinghuus kept repeating that the industry is not disputing the recommendation, as it has realized that proper management of this fishery "is essential."
Instead, he said, the industry needs to "reduce demand" and focus on more premium clients and producers rather than keep on selling it as a commodity product.
Consumers are expected to stop buying due to higher prices, he said.
They will be more willing to absorb higher prices and market the coldwater shrimp as a premium product, he said.
In addition, in-store assortments are likely to be reduced to one or two SKU rather than three. Bag sizes could also become smaller.
"Coldwater prawns [shrimp] will go from a everyday product to a more luxury/weekend product, he said.
The currently biggest markets for shell-on Greenlandic and Canadian coldwater shrimp are Russia with 29 percent, China with 25 percent and Sweden with 18 percent.
Cooked and peeled shrimp mainly end up in Europe, with the United Kingdom and Sweden leading the field of top importers.
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Monday, Oct. 6, 12.20 p.m. CET
Argentina shrimp: right management is everything
Argentinian shrimp -- or Patagonian shrimp -- have seen a remarkable growth trend over the last few years, recovering to nearly 100,000 metric tons last year after a massive drop due to a stock crisis in 2005 (see photo).
According to Nestor Bustamante, under-secretary of state for fisheries and aquaculture, Argentina, the secret to the success was new legislation, partly closures of fishing grounds, and scientific research vessel, which constantly observe stocks.
The 2014 season, which started in May, he described as "one of the best years for the fishery so far.
"Good management of the resources contributes to the sustainability. And the results are obviously very positive," he told the audience.
The efforts paid off, he said, as Argentinian suppliers upped their exports to nearly all major markets.
Japan, which only purchased 5,298 metric tons in 2010, tripled its imports within only three years to 16,575 metric tons last year.
Italy, which Bustamante described as a "constant presence," is also slightly buying more, upping its imports from 12,024 metric tons to 13,189 metric tons within three years.
China increased its imports by about 350 percent, from 392 metric tons in 2010 to 6,033 metric tons last year. The United States also imported more Argentinian shrimp, from 238 to 1,968 within three years.
Only Spain, decreased its purchases, downsizing from 45,441 metric tons to 41,891 metric tons in 2013.
"Any crisis has an opportunity and it has been very favorable for Argentina," Bustamante said. "From 2010 Argentina has overcome the historical average of below $400 million and today it exports more than $600 million."
He believes there is still room for growth, saying "it hasn't reached its ceiling."
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Monday, Oct. 6 11.55 a.m. CET
Gulf shrimp prices drop after 12-month high
The Gulf of Mexico brown shrimp fishery has had a difficult year. After starting two weeks late into the 2014 season, catches have remained low, Angel D Rubio, director Latin America at Urner Barry, said.
This resulted in continuing high prices throughout the year, he said.
“These small shocks on the supply have an impact on the price,” he told the audience.”
Prices had already been high in 2013 and stayed at levels of around $8 for 21-25 ct. per lbs in January, growing to $8.50 per lbs in April, and nearly $9.30 per lbs in August.
Catches recovered in August this year, reaching levels of 28,194 metric tons, and the market reacted with a drop in prices to slightly above $8 per lbs in September.
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Monday, Oct. 6, 11.45 a.m. CET
Analyst: Ecuador now No. 1 shrimp exporter to US
Thailand’s shrimp supply into the United States dropped from 55 percent market share in 2010, to 34 percent in 2012, and 22 percent last year, according to Angel D Rubio, director Latin America at market analysts Urner Barry.
In 2014, so far US customers only sourced 14 percent of its total shrimp needs to date from Thai suppliers, he said.
According to the analyst, Ecuador is now the top exporter into the United States, supplying 25 percent of its needs so far this year, followed by Indonesia with 24 percent and India 21 percent in terms of volumes.
Ecuador has also seen a massive shift of sales to Asia, which according to Rubio is reaching out to different countries to cope with their processing supplies.
According to his data, Ecuadorian producers supplied this year more than 20 million lbs to Asian processors – for the first time in history.
This accounts for 28.7 percent of the total Ecuadorian production.
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Monday, Oct. 6, 10.45 a.m. CET
Under-performing shrimp prices
Even though shrimp is the single largest seafood commodity traded worldwide -- capturing about 15 percent of the total value of internationally traded fisheries products, bigger than salmon, groundfish and tuna -- its prices have traditionally under-performed, Audun Lem, head of products, trade and marketing branch at FAO, said.
If it wasn't for EMS, which boosted prices in recent years due to the drastic cut in supply from Asia, prices would still be hovering around incredibly low levels, he said.
This was due to the massive increase of production over only a short period of time.
However, according to FAO projections to 2030, shrimp estimates are between 11.2 and 17.6 million metric tons of global production.
Prices for both and farmed shrimp will also continue to rise, Lem said, but how high and which is taking the lead is difficult to predict.
Factors playing into the rise will be production cost, production technology, space, energy prices but ultimately also how China will develop as an increasingly bigger importer of shrimp.
In terms of markets, Lem is predicting a slight shift from the largest markets, the United States, the European Union and Japan -- which is stagnating -- to new markets in Asia, South and Central America, the Middle East but also Africa.
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Monday, Oct. 6, 9.40 a.m. CET
Three magic words
Welcoming delegates and the audience at this years' World Shrimp Congress, Vigo's Mayor, Abel Caballero, touched on some of the recent issues facing the farmed shrimp sector -- especially in Asia.
For Spain's importers, he said, three "magic" words are key, he said, when sourcing shrimp: Knowledge, sustainability and traceability.
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Monday, Oct. 6, 8.00 a.m. CET
All eyes on Vigo...and shrimp
Galicia's fishing hub Vigo is once again in the center of attention for frozen seafood execs, as the 16th edition of the annual Conxemar exhibition opens its doors this Tuesday.
Hundreds of wholesalers, importers, exporters, manufacturers, distributors and processors are expected to walk the showfloor during the three-day exhibition.
Last year, the talks were dominated by the falling giant Pescanova, but this year could center around the recovering Spanish economy and the consequently new opportunities for seafood.
This year's events in Vigo kickstart with the World Shrimp Congress -- and while many are still working on getting their booth ready for the show, fisheries ministers, FAO experts and industry execs will analyze resources, markets, supply and utilization of the both wild and farmed shrimp at the one-day event.
The program includes a full panel of experts from top producing countries, including Ecuador, Honduras, Nicaragua, Mexico, Brazil, Argentina, Canada, United States, Vietnam, China, Indonesia, India, Thailand, Mozambique.
Click here for the full program. See you at the show!
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